Question: Re write this: The consumer relationship can also be impacted by government laws or regulations. Governments can change the way that consumers spend their money,

Re write this: The consumer relationship can also be impacted by government laws or regulations. Governments can change the way that consumers spend their money, and they do this through actions such as increasing or decreasing interest rates, or by raising or lowering taxes. These government actions can have a deep impact on the willingness of the consumer to purchase a good or service from a corporation. Let's consider the example of the automobile industry. Government regulations on emission standards can significantly impact this industry. If the government imposes stricter emission standards, automobile manufacturers will have to invest more in research and development to produce cars that meet these standards. This could increase the cost of cars, which could in turn affect consumer purchasing decisions

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!